By Myrna Velasco
Prices at the pumps will be on their third successive week of rollbacks in the coming days – with the cost of gasoline anticipated to go down by P0.80 to P0.90 per liter; and P0.30 to P0.40 per liter for diesel products.
Kerosene prices will also be on the downtrend with a reduction of P0.35 to P0.45 per liter based on industry estimates and hinged on the outcome of four-day trading in the world market.
Industry players indicated that price rollback calculations may still change a bit depending on the outcome of Friday’s trading in the world market.
The past three weeks basically brought relief to consumers given the cost reduction on fuel. For this week, gasoline users will reap heftier cost reduction benefits.
Majority of the country’s oil companies are expected to adjust their prices on Tuesday (September 10); but when price cuts are of bigger magnitude, players like Phoenix Petroleum would normally jump the gun on competitors by implementing rollbacks ahead of time.
Dubai crude, which is the benchmark for Asian refiners, had softened to the level of US$57.95 per barrel as of last trading day – which had gone down from last week’s US$58.40 per barrel level.
Global industry analysts are still watching closely the developments in the US-China trade war which has been causing a slide in prices due to prospects of global economic slowdown.
Since US President Donald Trump engaged China in a trade war, this became the single biggest development that had been exerting pressure on prices globally – beating even the usual geopolitical factors that the industry had already navigated with a higher degree of familiarity.
With both sides not giving any sign of concession or at least to enter into a compromise, oil market watchers are indicating that this dispute of the world’s two biggest economies will likely haunt the global industry for an even longer period.
Even investment plans of both local and global oil companies have been traversing the “terrain of uncertainties” because of the trade-underpinned clash of the two superpowers.